Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 7–LIQUIDATION

Sub Chapter – Officers and Administration

Sec. 706. Conversion

   (a) The debtor may convert a case under this chapter to a case under 
chapter 11, 12, or 13 of this title at any time, if the case has not 
been converted under section 1112, 1208, or 1307 of this title. Any 
waiver of the right to convert a case under this subsection is 
unenforceable.
    (b) On request of a party in interest and after notice and a 
hearing, the court may convert a case under this chapter to a case under 
chapter 11 of this title at any time.
    (c) The court may not convert a case under this chapter to a case 
under chapter 12 or 13 of this title unless the debtor requests such 
conversion.
    (d) Notwithstanding any other provision of this section, a case may 
not be converted to a case under another chapter of this title unless 
the debtor may be a debtor under such chapter.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2606; Pub. L. 99-554, title II, 
Sec. 257(q), Oct. 27, 1986, 100 Stat. 3115; Pub. L. 103-394, title V, 
Sec. 501(d)(22), Oct. 22, 1994, 108 Stat. 4146.)



                      Historical and Revision Notes

                         legislative statements

    Section 706(a) of the House amendment adopts a provision contained 
in the Senate amendment indicating that a waiver of the right to convert 
a case under section 706(a) is unenforceable. The explicit reference in 
title 11 forbidding the waiver of certain rights is not intended to 
imply that other rights, such as the right to file a voluntary 
bankruptcy case under section 301, may be waived.
    Section 706 of the House amendment adopts a similar provision 
contained in H.R. 8200 as passed by the House. Competing proposals 
contained in section 706(c) and section 706(d) of the Senate amendment 
are rejected.


                        senate report no. 95-989

    Subsection (a) of this section gives the debtor the one-time 
absolute right of conversion of a liquidation case to a reorganization 
or individual repayment plan case. If the case has already once been 
converted from chapter 11 or 13 to chapter 7, then the debtor does not 
have that right. The policy of the provision is that the debtor should 
always be given the opportunity to repay his debts, and a waiver of the 
right to convert a case is unenforceable.
    Subsection (b) permits the court, on request of a party in interest 
and after notice and a hearing, to convert the case to chapter 11 at any 
time. The decision whether to convert is left in the sound discretion of 
the court, based on what will most inure to the benefit of all parties 
in interest.
    Subsection (c) is part of the prohibition against involuntary 
chapter 13 cases, and prohibits the court from converting a case to 
chapter 13 without the debtor's consent.
    Subsection (d) reinforces section 109 by prohibiting conversion to a 
chapter unless the debtor is eligible to be a debtor under that chapter.


                               Amendments

    1994--Subsec. (a). Pub. L. 103-394 substituted ``1208, or 1307'' for 
``1307, or 1208''.
    1986--Subsec. (a). Pub. L. 99-554, Sec. 257(q)(1), inserted 
references to chapter 12 and section 1208 of this title.
    Subsec. (c). Pub. L. 99-554, Sec. 257(q)(2), inserted reference to 
chapter 12.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not 
applicable with respect to cases commenced under this title before Oct. 
22, 1994, see section 702 of Pub. L. 103-394, set out as a note under 
section 101 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-554 effective 30 days after Oct. 27, 1986, 
but not applicable to cases commenced under this title before that date, 
see section 302(a), (c)(1) of Pub. L. 99-554, set out as a note under 
section 581 of Title 28, Judiciary and Judicial Procedure.

                  Section Referred to in Other Sections

    This section is referred to in sections 348, 1146, 1208, 1231, 1307 
of this title.



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Note: For affordable legal assistance The Center For Debt Management highly recommends Standard Legal's Do-It-Yourself Bankruptcy Forms Software Kits. For credit repair services,
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For more bankruptcy help and bankruptcy alternatives, go to Bankruptcy Resources

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Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software